Purcell Takes Stage, Tries to Rally Support 

May 10, 2005,

By Kristen French

Morgan Stanley’s embattled CEO Philip Purcell tried to shore up shareholder support and squelch the almost daily flood of media speculation over the firm’s future Tuesday with his first public address since the controversy over his leadership broke....

FPA Sues to Stop Broker-Dealer Exemption  

Apr 29, 2005

FPA Sues to Stop Broker-Dealer Exemption 

Apr 29, 2005,

John Churchill

The Financial Planning Association announced yesterday that it has filed a petition in the U.S. Court of Appeals for the District of Columbia Circuit, seeking review of the SEC’s decision earlier this month to extend the “Merrill Lynch” exemption, which allows registered reps to call themselves financial advisors. The FPA hopes to have the rule withdrawn....

Raymond James Fined, Drops Fee-Based Brokerage—Will Others Follow? 

Apr 29, 2005,

By Kristen French

In the first settlement of its kind, the NASD hit Raymond James with a $750,000 fine Wednesday for pushing fee-based brokerage accounts on the wrong kinds of clients. The NASD said Raymond James Financial is in the process of dissolving its fee-based brokerage business, a pricing plan that gave clients the option of paying a flat annual fee for a year’s worth of trades, rather than paying commissions on each transaction. The problem with the Raymond James fee-based Passport Brokerage and Ambassador programs, which together held $5.5 billion in assets at year-end 2004, according to the NASD, was that it was sold to clients who did not trade enough to justify the annual fees, which tend to range from 1.1% to 1.5%. The ruling was the result of an ongoing NASD investigation into fee-based brokerage accounts. ...

NASD Sends Older Reps Back to the Classroom 

Apr 28, 2005,

By John Churchill

It used to be that the NASD’s continuing education requirements covering regulatory issues were for reps that had recently gotten their Series 7 licenses. But, effective this month, the NASD is sending everyone back to the classroom for training, no matter how long you’ve been doing business....

Raymond James Fined, Plans to Drop Fee-Based Brokerage 

Apr 28, 2005,

By Kristen French

In the first settlement of its kind, the NASD hit Raymond James with a $750,000 fine Wednesday for improperly putting certain clients in fee-based brokerage accounts. The NASD said Raymond James Financial will terminate its fee-based brokerage business, which currently represents $5.5 billion in assets, by July 1, 2005....

A Pawn Takes the Queen 

Apr 26, 2005,

By Kristen French

Sometimes it pays to take on securities regulators, despite their financial and legal heft. Consider the case of Charles Elliott. In a rare victory for a broker in a settlement dispute with the SEC, Elliott last week won recovery of over $100,000 in legal fees after an SEC lawsuit against him was dismissed....

‘Merrill Rule’ Debate Not Over 

Apr 8, 2005,

By John Churchill

On Wednesday, the SEC unanimously voted to allow Series 7 holders—registered reps—to position themselves as financial advisors—with certain caveats. But, once again with the “broker/dealer rule issue,” the SEC seemed to hedge its bet....

Morgan Stanley Combatants Step Up Their Fight as Purcell Claims Victory 

Apr 8, 2005,

By Will Leitch

Even though Morgan Stanley’s board has said that it stands behind Philip Purcell as CEO, the group of dissidents calling for Purcell’s ouster is digging in for a long, protracted fight for control of the company....

NASD Advocates More Disclosure, Less Paper 

Apr 7, 2005,

By Kristen French

Broker/dealers and their reps may get a big break on point-of-sale disclosure if the Securities and Exchange Commission heeds recent NASD advice. In a report issued Monday, an NASD task force recommended that b/ds and mutual funds make certain cost and sales practice disclosures on the Web, rather than on paper....

SEC Adopts Broker-Dealer Exemption 

Apr 6, 2005,

By John Churchill

Over the vociferous objections of fee-only financial planners, the SEC voted unanimously today to adopt the broker/dealer exemption rule....

In Brouhaha, Board Backs Purcell at Morgan Stanley 

Apr 6, 2005,

By Will Leitch

The palace intrigue at Morgan Stanley continues—to the delight of the New York City-based financial journalism core. For days now, Morgan CEO Philip Purcell’s struggle to keep the helm of Morgan has been splashed across front pages of the major dailies. ...

House Urges SEC to Adopt Broker-Dealer Exemption Rule 

Mar 30, 2005,

By John Churchill

The House Committee on Financial Services has urged SEC Chairman William Donaldson to continue to allow Series 7 holders to call themselves financial advisors as defined by the Investment Advisers Act of 1940. Coincidentally, the House’s recommendation on the so-called Merrill Lynch Rule was sent on March 29, the same day the SEC released its own survey that shows the investing public is confused over what a broker (registered rep) is and what a financial advisor is. [To read the House Financial Services Committee’s letter, go to http://financialservices.house.gov/media/pdf/031705obsec.pdf.]...

More Turmoil at Morgan Stanley 

Mar 30, 2005,

By Will Leitch

Philip Purcell, CEO of Morgan Stanley, is under fire again. In a shake-up that shocked even observers who said they had seen such an explosion coming, the beleaguered Purcell watched two of his top executives resign in protest of his leadership on Tuesday....

Mutual Fund Enforcement Picks Up Steam 

Mar 24, 2005,

By Kristen French

The recent flurry of mutual fund-related punishments from the SEC is likely just the beginning of a coming avalanche of similar regulatory actions, legal experts say....

Wachovia: On the Recruiting Warpath 

Mar 18, 2005,

By Will Leitch

Wachovia Securities, with its purchase of Prudential in early 2003, suddenly became the third-largest brokerage in the country. Now, just over a year later, the firm has announced the creation of the Individual Investor Group, a unit entirely devoted to recruitment and retention of individual brokers....

Peter Meyer Training  

Mar 8, 2005,

BY PETER MEYER

Merrill Unveils New Way to Think about Retirement 

Feb 24, 2005,

By Will Leitch

A new study from Merrill Lynch asserts that the oft-predicted baby boomer retirement crisis will be a nonevent for one important reason: Most boomers don’t plan on retiring in the same fashion as their parents....

Janney Montgomery to Merge with Parker/Hunter 

Feb 23, 2005,

By John Churchill

Janney Montgomery Scott, one of the country’s oldest regional broker/dealers, has announced plans to buy Parker/Hunter, a small independent b/d-investment bank based in Pittsburgh....

SEC’s Roye Out as Mutual Fund Head 

Feb 22, 2005,

By Will Leitch

In a move that casts doubt on the future of mutual fund regulation, the SEC has announced that its chief mutual funds legislator, Paul Roye, will step down, effective immediately....

From Brokerage House to the Big House 

Feb 17, 2005,

By John Churchill

Dennis Herula, the 59-year-old former Raymond James Financial Services broker who lavished himself with homes and other gifts using millions of dollars stolen from clients, was sentenced to 16 years in federal prison on Friday....

NASD Charges American Funds with Directed Brokerage Violation 

Feb 17, 2005,

By John Churchill

Saying it’s just as impermissible to make directed-brokerage payments as it is to receive them, the NASD charged American Funds—one of the country’s most reputable asset managers—with paying kickbacks to brokerages for selling its funds. The NASD says the popular fund firm violated securities rules by directing $100 million in commissions to the top 50 retailers of its 29 different funds. American Funds denies the charges. ...

American Express to Exit the Financial Advisory Business 

Feb 1, 2005,

By David A. Geracioti

American Express announced today that it is spinning off its Financial Advisors unit (AEFA) from its credit card and travel operations. American Express shareholders rejoiced, sending shares up 6.4 percent. AEFA will be spun off to shareholders and not sold, Amex executives said, because of adverse tax consequences that shareholders would have faced in a sale....

MetLife Buys Citigroup’s Insurance Arm 

Feb 1, 2005,

By Will Leitch

Citigroup’s decision to sell its Travelers Life & Annuity arm to MetLife for an estimated $11.5 billion could be a sign of things to come in the financial advisory business....

Financial Consultant and Therapist 

Jan 28, 2005,

By John Churchill

The role of therapist—and even amateur neurologist—is creeping into the financial advisory business. For some FAs, it may be time to put a couch in the office and to consult a map of the human brain....